"This would be a council fully elected by, fully representative of, and fully accountable to, Wairarapa residents - a true, grass-roots democracy," they said in a statement.
Under the panel's proposal, Wairarapa would have a single councillor on a Wellington-based council, and become one of six "area councils".
The mayors said the proposal left only two realistic options for Wairarapa - a single Wairarapa unitary authority or becoming part of the proposed Wellington structure.
A Wairarapa District Council with a separate regional council would not be possible because the present regional council would be disestablished.
"Wairarapa now needs to decide whether it wants to elect its own mayor, councillors and community boards to govern Wairarapa's planning, assets, finances and services; or transfer all of that to Wellington and replace it with one Wairarapa representative on the decision-making body," the mayors said.
New laws about local governance structure are expected to be passed by Christmas, which has sped up the process with councils throughout the Wellington region considering their futures.
The working party is finalising its work, which will be completed after a hui with all Wellington and Wairarapa councils on November 21.
You can find information, have your say and ask questions on the working party's website www.wairarapasfuture.govt.nz and at district council offices in Wairarapa.